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Prospect Ratings Demystified
OrHow to read that “stuff” in Wizard
Special ThanksLai Lonne Fong
Dorothy U. OluonyeJessica Messerschmitt
Why have ratings?Determine Wealth LevelsGift CapacityPropensity to GiveFrequency of GivingLikely Gift Type (CRT, Bequest, etc.)
Who has ratingsAll Domestic Alumni (unless they are
deceased)Many Foundations and Corporations (older
records—no longer reviewed)Certain Friends (most at this point)
The LIFETIME RATING Explained
Making a recommendation based on an analysis of financial and other factors about the range of gift
possible from a prospect. (Cecilia Hogan; Prospect Research—a Primer for Growing Nonprofits; Jones and
Bartlett, c. 2004)
What it MeansDefinition 1: 3% to 5%, conservatively
calculated, of Demonstrated Net WorthDefinition 2: What a prospect can be
expected to expend philanthropically over the course of his or her lifetime—to any charitable institution (not just CWRU)
Why?Prospects need to be “binned” in categories
by wealth on an absolute scale—Who is the richest and what percentage can we get?
Propensity is NOT at issue here, just wealth
Where to Find itOn the front Screen in the Purple QuadrantNOT THE WHOLE PICTURE—Drill down!!
Three types of rating: LIFETIME NEEDS RESEARCH APPROVAL NO LONGER VALID
How is Lifetime Rating CalculatedBalance Sheet Model
Assets – Liabilities = Net WealthIndustry Standard Formulas for Calculating
Net Worth—Several Scenarios FormulatedMost likely scenario is used based on
combination of “hard” and “soft” data (contact reports, news articles –other giving, etc.)
Ratings ControlResearch Office has last word…BUT!Ratings will be changed if proof is offeredPropensity to give to CWRU not a factorRatings are reviewed from time to time
How Ratings Stack UpUp to $100M: 3 Alumni, 24 FriendsUp to $50M: 2 Alumni, 6 FriendsUp to $25M: 20 Alumni, 26 FriendsUp to $10M: 45 Alumni, 54 FriendsUp to $5M: 213 Alumni, 137
FriendsUp to $2.5M: 60 Alumni, 54 FriendsUp to $1M: 224 Alumni, 99 FriendsRatings from $100K - $500K not fully
approved: there is much room for growth!!
Expectation FieldFound on Prospect ScreenIntended for Fundraiser useCompletely user-defined
The PRIZMNE SystemClassifies thousands of neighborhoods in 66
lifestyle segments, each a distinct marketplace group
Provides a highly accurate measure of socioeconomic standing, philanthropic tendency, and lifestyle indicators(Source: GGA presentation, 2005)
PRIZMNE VariablesSocial Rank (income, employment, education)Household CompositionMobility (length of residence, car ownership)EthnicityHousingUrbanization (urban/rural, housing densities)
(Source: GGA presentation, 2005)
Where to Find PRIZMNE
Found in Demographic Profile sectionCodes of Importance:
1 Upper Crust (6,613 hits)2 Blue Blood Estates (3,357 hits)5 Country Squires (5,513 hits)6 Winner’s Circle (2,160 hits)7 Money & Brains (6,326 hits)9 Big Fish, Small Pond (6,294 hits)10 Second City Elite (2,104 hits)
Grenzenbach Glier & Associates
The GGA ratings
GGA ExplainedAlmost all individuals in Wizard were rated in 2005Three, Four or Five ratings, found in Evaluations
GGA Major Gift: A, B, C, D, E (A being the best)GGA Annual Giving: 1 through 6 (1 being the best)GGA Planned Giving: P, S, T, X (P being the best)NL (Nothing to Lose): High wealth but no givingGGA Gift Capacity Estimate (not very many records)
Blackbaud AnalyticsThe next wave in prospect ratings!
What is Blackbaud?A Predictive Model Charts Capacity AND LikelihoodMost Detailed Product Available on MarketAs Many as 26 Records per Prospect
Blackbaud Ratings Broken DownUniversity as a whole analyzed for:
Major Gift Likelihood ($2,500 or more)Annual Giving LikelihoodAnnuity LikelihoodCRT LikelihoodBequest LikelihoodTarget Gift Range (capacity)
Each school analyzed separately:Major Gift Likelihood (school specific)Target Gift Range
Where to FindFound in Evaluations
Target Gift Range (TGR’s) Scores are from 1 to 15 (University) and 1 to 12 (schools)
Likelihood Scores are from 1 to 1,000 (1,000 being the best score) Mapped into Wizard in file-specific Quartiles Ignore the $ sign on actual rating—it is a hard code
Ratings Not (Yet) in WizardFrom Blackbaud Wealthpoint Screening:
Estimated Wealth To be mapped to a wealth field
Annual Giving Capacity ($ range)Annual Giving Capacity Value ($ value)
1% of Wealthpoint total assetsMajor Giving Capacity ($ range)Major Giving Capacity Value ($ value)
5% of Wealthpoint total assets
YOUR GUT INSTINCT!!!
How-to Section (the fun part)
Looking up ratings; reports, etc.
Reports where Ratings MatterFile-Print-Other
Brief Biographical SummaryExecutive SnapshotWizard In-depth ProfileHigh Profile Summary ReportProposal List – Entity NEW (choose school for
Blackbaud)Proposal List – Prospect NEW (choose school for
Blackbaud)
Not all ratings appear on all reports
Ratings in Advanced Look-upTab PT (A-N)
Evaluation sub-tabUse Type and Rating fields
To look up Blackbaud data:Best interpreted as a combination of MGL and
TGR You must do two searches and use intersecting
clipboards
For PRIZMNE
Tab PT (A-N) Demographic Profile sub-tab; use Level field
